Companies

Zhongjin Gold 2010 profit doubles on higher gold prices

(Xinhua)
Updated: 2011-03-23 17:30

BEIJING - Zhongjin Gold Corp, China's second-largest bullion producer by market value, said Wednesday its profits more than doubled last year due to higher prices for non-ferrous metals.

Net profits climbed to 1.13 billion yuan ($171.21 million) from 521.43 million yuan in 2009. Earnings per share stood at 0.79 yuan, compared with 0.37 yuan a year earlier, the gold producer said in a statement filed with the Shanghai Stock Exchange.

The company said its profit gains were largely due to rising gold prices, which increased 25.6 percent year on year to $1,225 per ounce in 2010.

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By the end of last year, the company had 463.82 tons of gold reserves and 10.39 million tons of iron ore.

The gold producer said its earnings are likely to remain resilient through this year, as inflationary pressures and violent movements in asset prices would continue to boost Chinese investors' demands for gold as a safe haven.

Shares of the gold producer fell 0.27 percent to 36.99 yuan on Wednesday.